Work With A Staffing Agency In Madison WI
Employee Vs. Contractor – An Annual Review
Working with a staffing agency in Madison, WI can have a significant impact in your overall business model, particularly if you are considering staffing your team with contractors. The choice between employees and contractors should not be taken lightly; savvy entrepreneurs understand that knowing the differences, and benefits associated with each can help make the decision process as straightforward as possible.
Simply deciding that contractors make sense for your business model is only the first step in the process. Hiring contractors requires following specific mandates and regulations to ensure that your business remains compliant throughout the project engagement. One common error made by employers when bringing on contractors? Misclassification. For employers in virtually every industry, staying on top of the classification requirements can prove challenging. Wrongfully classifying an employee can quickly result in significant fines, fees and taxes based on labor laws.
The IRS may also take notice of misclassified employees within your organization. Should you mistakenly place someone who is legally an employee into the contractor category, your business could be vulnerable to other penalties, such as back taxes, Social Security and Medicare. The IRS may not stop there; the department may also pursue you for missing federal and state unemployment taxes as well. Worse yet, if someone you claim is an independent contractor actually claims employee status, you may find your entire organization undergoing a payroll audit.
Work With Staffing Agency In Madison, WI To Ensure Compliance
While some business owners have a firm grasp on the employee vs. contractor question, many struggle making a definitive categorization. The best way to protect your organization from misclassifying workers is to partner with a staffing agency in Madison, WI. Staying on top of the rules and regulations qualifying a contractor can prove a full-time job…and as the leader of your company you already have (at least) one full-time job. A professional staffing agency in Madison, WI will have the knowledge and insight needed to staff your open contractor positions with actual contractors and manage all the documentation.
Most importantly, a professional recruiting team not only knows how to find contractors; they will also know how to manage your contractors. They understand what documentation needs filling out and filing. They will continuously update your contracts and keep them on record so your business never has to worry about noncompliance or false classification.
Discuss The Process When Teaming With A Staffing Firm
Many recruiting agencies emphasize their extensive access to talent. However, in order to avoid potential fines and penalties, you should find a team that also wants to discuss their process. Discuss how they manage documentation that demonstrates contractor status. Ask what your responsibilities are throughout the work engagement. Going into the assignment with a solid understanding of what’s expected as well as what you can expect can make a major difference in your overall experience.
Contact The Payroll Company Today For More Information
If you’re struggling with categorizing your staff members, The Payroll Company can help. Contact our team of recruiting specialists today to discuss your hiring needs. We look forward to hearing from you!